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Original poster

Ex buying me out...money from the house and benefits

18 replies

Ax688 · 23/05/2018 10:22

Hi i just need some advice.

My ex is buying me out of the joint house. We have 3 kids and i dont work. I am getting 16k.

I am moving into rented property and will be claiming benefits.

I have nothing so with the money i will be furnishing the house, buying a car and 1 years insurance. Also paying £5k upfront for rent and deposit.

Now my main question is when the money goes into my account will that be seen as savings? As once its in half of it will be spent on the above things.

When do i declare what is left over?

Do i declare the 16k then once ive paid everything do i let them know my money has dropped?

I hope this makes some sort of sense just worried about the benefits side. Just looking for advice on what i do. Thanks

OP posts:
Babyroobs · 23/05/2018 11:08

What benefits are you claiming? if you are claiming Universal credit then you cannot claim it with 16k in the bank and your UC would be reduced for anything over 6k. I think they would see it as fine to spend money on deposit etc and furnishings but just keep receipts etc so that it isn't seen as ' deprivation of capital'. When you first apply for any means tested benefits they will want details of your bank accounts.

Babyroobs · 23/05/2018 11:10

Just to add if you are claiming tax credits ( which you most likely will with 3 kids as you cannot make a UC claim currently with 3 kids) then tax credits are not affected by savings, you only need to declare the first £300 in interest earned in a year. Please ignore previous comments as UC will not apply to you. The 16k rule will apply for housing benefit though and anything like Income support.

Ariela · 23/05/2018 11:25

Could you suggest he pays the cash over in installments as you spend it? Or pay the rent and deposit up front for you and transfer the rest to you?

lubeybooby · 23/05/2018 11:28

I would move out, furnish, spend whats needed and THEN claim afterwards once you know what you have left

thousandpapercranes · 23/05/2018 11:40

lubey But surely it just shows up on her bank statements when she makes an application for HB.

If in doubt always declare it and tell them of the situation. They’ll deduct a certain amount from your benefits to counter your ‘savings’. Not sure what happens once those funds have gone.

Babyroobs · 23/05/2018 11:45

It is perfectly fine to spend money reasonably. If you went out and bought a new car or spent 5k on an extravagant holiday then that would be seen as ' deprivation of capital'. However spending money on a place to rent and essential furniture will not be a problem.

gamerchick · 23/05/2018 11:48

Just get recipients for everything you've spent the money on so you can prove where it's gone.

thousandpapercranes · 23/05/2018 11:53

I wouldn’t have thought a car would have been deprivation of assets Confused

But good to know Baby tax credits are not affected by savings. I’ll be in a similar situating once my divorce comes through. Do you know if they stop HB immediately once you receive proceeds of sale?

gamerchick · 23/05/2018 11:57

Do you know if they stop HB immediately once you receive proceeds of sale?

You have to tell them about a change in circumstance.

thousandpapercranes · 23/05/2018 12:07

Sorry I didn’t word that particularly well. I meant what decision would they make, if you declared that you had 50k as a deposit for a house. Would you have to use that 50k for rent whilst you were transacting a house purchase?

Babyroobs · 23/05/2018 12:12

I think if you went out and bought an expensive new car it could be classed as depravation of capital but not a second hand one. Best to ask them just to clarify.

Babyroobs · 23/05/2018 12:13

If capital from a divorce house sale is being used to buy another property then I think it is discounted for a certain length of time.

swingofthings · 24/05/2018 17:16

I'd be careful with paying a year's car insurance + £5K upfront, as these will not seen as necessary payments and deemed to constitute deprivation of assets. Give HB a call and ask.

Original poster
Ax688 · 25/05/2018 18:27

Why do you say paying 6 months upfront could be seen as a deprivation of assests? I dont work and have no guarantor. This was the only way to secure a place to live for me and the children.
I will ring them.

OP posts:
EveningHare · 25/05/2018 18:30

If you have 50k then you don't need housing benefit

Yes I know youre trying to get on the housing ladder but benefits are there to support you when you need some help

I'm lucky in the work I do because it is well paid, but I couldn't save 50k

EveningHare · 25/05/2018 18:31

On the op question, I can't see you buying home wares and rent being seen as deliberate deprivation

SailingOn · 25/05/2018 18:38

Sorry but am I missing something here? Why do you have to declare anything? I didn't declare my inheritence when claiming UC for 4 months last year.

ivykaty44 · 25/05/2018 18:44

Sailing on it will depend how much your inheritance was as to whether you needed to declare it

If the inheritance was £50 it would make a big difference from £20000

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